Critical Evaluate the Effects of Corporate Social Responsibility Activities on Financial Performance in Uk Retailing Industry?

Topics: Corporate social responsibility, Social responsibility, Supermarket Pages: 8 (2392 words) Published: November 2, 2012
Critical evaluate the effects of corporate social responsibility activities on financial performance in UK retailing industry?

Corporate social responsibility & UK supermarkets5
CSR behavior of UK supermarkets5
- Environment5
- Community6
- Marketplace6
- Workplace7
The effect of CSR investment on financial performance of major supermarkets in UK7 -Explanations of figure 1-38
Case study: The effect of corporate social responsibility on financial performance of Tesco supermarket10 - Corporate steering wheel of Tesco10
- Positive correlation between CSR contribution and financial performance11 Bibliography:13
Appendix : ……………………………………………………………………………………………………14

Some companies made positive contributions to the community, but some of them did not. Since commercial companies have popularized the concept of corporate social responsibility in 1970s, the discussion about this topic has never been stopped. It is always difficult to determine how much corporate social responsibility investment occupies in commercial companies’ financial budget. Based on different understandings of scholars of this concept, commercial companies have come up with a variety of ways of measuring it. The Commission for the European communities, which is the executive body of European Union (EU), identifies the corporate social responsibility (CSR) is a concept that has been synthesized in commercial activities and in the communication with stakeholders by profitable companies on a voluntary basis (The Commission of European Communities 2002, cited by Kapoor 2010). This concept came into common use in early 1970s with the meaning of embracing social responsibilities for companies. From the perspective of society, the function of corporate social responsibility was to measure whether the companies’ behavior is negative to the society or not; from the view of companies, they have integrated it as part of the core business rather than perceiving it as a limitation. Moreover, this commission divides this concept into two parts, internal and external responsibilities. The internal part of corporate social responsibility contains the safety work condition, employee’s welfare and so on; the external part involves environment protection, charity etc. (In this essay, CSR is short for corporate social responsibility.) Many companies concern the strategy of social responsibility investment (SRI); the objective of them is to make use of the CSR activities to infinitive benefiting corporate performance, including build good image and increase brand value. However, some other companies hold opposite attitude about engaging in corporate social responsibility activities; they do not believe that investing in these social activities can reinforce their profitability. The main body of this essay will demonstrate the effects of CSR investment on financial performance of UK major supermarkets. The first part includes the overview of CSR behavior in UK major supermarkets. The next part will show the findings about the relationship between CSR investment and financial performance. The last part of main body will demonstrate a specific investigation about the interaction of CSR contribution and Tesco’s financial performance. The aim of this essay is to critical evaluate the effects of these activities on financial performance in UK retailing industry with both theory and case study.

Corporate social responsibility & UK supermarkets
CSR behavior of UK supermarkets
In UK retailing industry, CSR has been well recognized and deeply integrated into business strategy. According to (Deloitte 2004 cited by Jones 2005) 2004 Global powers of retailing, some of UK major supermarkets disclosed their CSR reports to public, including TESCO, Marks & Spencer (M&S) and Sainsbury’s. Be more specifically, several CSR examples of these...
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